Sometimes things aren’t always what they seem.

In this case, real estate may not be what it seems either.

As a real estate investor, one of the most important qualities you should develop in yourself is the ability to recognize what is the full potential of a property. This can give you a huge edge over your competition that only sees properties in their current state. Many times, this current state is much less profitable than what it could be.

Recognizing the full potential value of a property involves visualizing what a property’s restored value would be and putting aside whatever its current value may be.

How zoning can play a role

Most novice investors completely overlook the possibility of a change of the use of a property. By doing this, you would be ignoring high quality money making real estate investment opportunities. By being a knowledgeable investor and researching zoning requirements not you will not only safeguard the current use of the property but you may also gain clues to what may become surprise profits from another use. For example, you may have a home on a large lot. Have you investigated whether you can convert that into twin home lots?

Examples of thinking outside the real estate box

• You can subdivide a large lot into smaller multiple lots
• You can change your monthly rent payment schedule into a weekly one
• You can take down and demolish what’s currently on the lot and build a more profitable alternative
• You can convert a single-family home into a duplex or even into office
• You can convert an apartment building into a condominium (or vice-versa!)

How can you research the potential uses of a property?

First off, you want to get the zoning maps for the areas you want to invest in. Ask yourself questions about the property you want to invest in. What might be a better use of this property that would significantly improve its profit and/or passive income potential? Do the current zoning ordinances allow what would be the preferred use of this property or would these ordinances need to be altered? If these changes would improve the investment potential of the property, what would it cost and how long would it take? Is the time, effort, and cost involved worth the return on investment? Would this property be able to give a positive cash flow while these changes are being made? Would this property give enough of a profit that even a temporary negative cash flow while the changes are being made would be acceptable?

What are some links to South Florida zoning maps ?

• Miami-Dade County zoning maps:
  http://www.miamidade.gov/planzone/track/zoning_str.asp
• Broward County zoning maps:
  http://gis.broward.org/BC_Maps/Maps.aspx
• Palm Beach County zoning maps:
  http://www.co.palm-beach.fl.us/pzb/Maps/pzbmaps.htm